David R. Kotok quoted in…

Ignore the angry bleating of aggrieved creditors

Examining the legacy of the Greek retrofit

By Robin Wigglesworth - Financial Times - August 21, 2023

 

 

 

Excerpt follows:

 

When a country hits a rough patch and its lenders start worrying about default, there are usually lots of warnings of near-eternal financial damnation.

The cries are particularly shrill when the country looks like it is plotting a sweeping or aggressive restructuring. “You’ll be locked out of the bond market for a generation!” etc etc, bondholders will protest.

But an interesting new paper by Patrick Bolton, Xuewen Fu, Mitu Gulati and Ugo Panizza examines the long-term impact of the legal ju-jitsu that Greece used to ram through its €200bn debt restructuring. And it provides a timely reminder that these warnings are often just gamesmanship that countries should discount or ignore.

". . . At Cumberland, we did not own and we will not own debt where a legal system can rewrite a contract, unless disputes (bankruptcy) can be adjudicated by a neutral court . . . We still believe in English law and American courts. If we lose those, we are all doomed." -David R. Kotok

 

 

 

Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

 

Sign up for our FREE Cumberland Market Commentaries

 

Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.